Understanding the financials of a company

[sunny4328]

Hi Guys,

I am looking for suggestions on what is the best way to learn the financial analysis aspect of a company. Are there any good books,courses, blogs, etc which I can go through?

I am passionate but a novice in the field, so any help would be really appreciated.

Cheers
Sumit

 

[allmytrades]

I don't have any advise, but would also like to know the same thing. Personally I try to look for companies that have a lot of open interest under options chain (I use Think or Swim, that's how it's called there).

 

[Panic!]

https://www.wallstreetmojo.com/best-valuation-books/

https://www.coursera.org/courses?query=valuation&

What helped me the most was just reading through annual reports, listening to earning calls etc. This way you get a feeling for what moves the share price.

 

[allmytrades]

I will also suggest a https://finviz.com/ screener. There is a plethora of options you can select and filter the stocks. If you want to buy and hold as an investment then look for divident stocks, Coca Cola KO for example dropped a bit so it might be good choice to buy.

 

[J_C_Anderson]

Totaly agree with you, Finviz is the tool number one.
If you want to understand fundamentals better, look for the books about corporate finance. They will give you the understanding of inner world of companies, how they are built and operate. If such book seems to be difficult, try to start with some basic information from business cources for colleges and universities.
You can also try to find free online courses on corporate finance - it will be easier to understand it when someone explains the information instead of reading it. Some of the large financial companies also have they YouTube channels, usually placing there short and informative videos on related issues.

 

[Panic!]

FinViz won't help you if you don't understand the numbers. Read the books, do the courses.

 

[tomorton]

I haven't read much about FA of companies but I would recommend Jim Slater's The Zulu Principle. His focus is on small cap stocks which are likely to experience significant and dramatic price rises.